Beware of Workaholics: Household Preferences and Individual Equilibrium Utility
AbstractThis paper analyzes the effects of sociological changes in the form of a shift of influence within two-member households participating in labor and product markets. The most striking effects occur when household members differ in individual preferences and enjoy positive leisure-dependent externalities. For instance, a global sociological change where the “workaholic" member becomes more influential in each working class household can render the working class worse off. A binding restriction on the number of hours an individual is allowed to work can benefit all workers.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1502.
Length: 33 pages
Date of creation: Feb 2005
Date of revision:
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Find related papers by JEL classification:
- D10 - Microeconomics - - Household Behavior - - - General
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-02-27 (All new papers)
- NEP-BEC-2005-02-27 (Business Economics)
- NEP-MIC-2005-02-27 (Microeconomics)
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